Gucci owner buys Manhattan building for US$963 million

KERING, the fashion firm that owns Gucci and Balenciaga, purchased a building on Manhattan’s Fifth Avenue for US$963 million, the latest massive New York City real estate deal by a global luxury company.

Kering bought 715-717 Fifth Ave, located at the corner of 56th Street, across from Trump Tower, according to a statement on Monday (Jan 22). The property spans 115,000 square feet and has multiple levels of retail space.

“This investment represents a further step in Kering’s selective real estate strategy, aimed at securing key highly desirable locations for its Houses,” Kering said.

Kering joins others snapping up buildings in New York instead of leasing space.

Last month, Bloomberg reported that Prada is expanding its presence in Manhattan with a US$835 million deal that includes two acquisitions on Fifth Avenue. It was among the largest real estate purchases in the city last year.

Automaker Hyundai Motor Group bought a Tribeca building for offices and a showroom.

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The Prada and Kering Manhattan properties were sold by Jeff Sutton, according to sources familiar with the matter who asked not to be identified citing private information.

Representatives for Sutton and brokerage Eastdil Secured declined to comment.

Manhattan’s retail properties have held up better than some other building types including offices, the Real Estate Board of New York said in a report on Monday.

Leasing has been most competitive in neighbourhoods including SoHo and the Flatiron district.

Kering has purchased other prime retail properties in recent years, including spots on Avenue Montaigne and Rue de Castiglione in Paris. The company also owns buildings in Tokyo’s Omotesando and the Hotel de Noce, which houses Boucheron’s Paris flagship. BLOOMBERG